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WASHINGTON, D.C. – The United States Senate tonight unanimously approved compromise fuel efficiency legislation sponsored by Senators Ted Stevens (R-Alaska), Daniel Inouye (D-Hawaii), Dianne Feinstein (D-Calif.), Trent Lott (R-Miss.), John Kerry (D-Mass.), Thomas Carper (D-Del.), Chuck Hagel (R-Neb.), Olympia Snowe (R-Maine), Bill Nelson (D – Fla.), Byron Dorgan (D-N.D.), Lamar Alexander (R-Tenn.), Maria Cantwell (D-Wash.), Bob Corker (R-Tenn.), Elizabeth Dole (R- N.C.),  Larry Craig (R-Idaho) and John Sununu (R-N.H.).  The measure would raise the fleetwide average fuel economy standards for all cars, trucks and SUVs to 35 miles per gallon by Model Year 2020.  In January, Senator Stevens introduced legislation to increase fuel efficiency standards for passenger cars to 40 miles per gallon by 2017. Current fuel efficiency standards for passenger vehicles are 27.5 miles per gallon, and 22.2 miles per gallon for light trucks.

“I am pleased this amendment has garnered so much bipartisan support,” said Senator Stevens.  “This provision will keep America moving toward the future with advanced vehicle technology. The only way our country will achieve energy independence is through improved fuel efficiency, increased domestic production and the development of alternative fuels. One initiative without the others will not achieve America’s overall energy objective.”

Compared with S. 357, the fuel efficiency measure approved by the Senate Commerce Committee, the compromise reached today would remove the mandate to require that 50 percent of vehicles be flexible fuel capable in 2012, increasing to 80 percent in 2015.  It instructs the Department of Transportation to develop a plan to ensure that 50 percent of vehicles sold in the United States are alternative fuel vehicles by 2015, taking into consideration the availability of fuel and cost-effectiveness of alternative technologies. Alternative fuel vehicles include, but are not limited to, flexible fuel vehicles, hybrids, fuel cells, and others. The compromise removes the four percent per year mandated increase for model years 2021 through 2030 and replaces it with language that calls for maximum feasible improvements. The measure mandates that the National Highway Traffic Safety Administration (NHTSA) develop an attribute-based reform fuel economy standard. Finally, the compromise will provide a separate program for low-volume manufacturers, including new market entrants, to ensure that these vehicles achieve a maximum feasible fuel efficiency standard.

FUEL EFFICIENCY PROVISIONS IN THE BILL, AS AMENDED:

• Would include passenger cars and light trucks up to 10,000 lbs (collectively “automobiles”), commercial medium-duty and heavy-duty trucks are more than 8,500 lbs and, if under 10,000 lbs, not an automobile.
  
  
• The Secretary of Transportation (Secretary) would be required to establish maximum feasible average fuel economy standards for cars and light trucks beginning in MY 2011 in order to reach a domestic fleet-wide (not per manufacturer) average of 35 mpg by MY 2020.  These standards could be based on vehicle attributes and would be increased ratably between MY 2011 and 2019.
  
  
• The Secretary, in consultation with the Secretary of Energy and Administrator of the EPA, would be required to examine commercial medium- and heavy-duty trucks and prescribe an appropriate fuel efficiency improvement program to achieve maximum feasible improvement.
  
  
• Alternative fuel economy standards would be prescribed for low volume manufacturers at the maximum feasible level.
  
  
• The maximum feasible standard for automobiles would be determined by considering economic practicability, effect of other Government motor vehicle standards on fuel economy, environmental impacts, and the need of the United States to conserve energy.
  
  
• When setting or revising a standard, the Secretary should ensure that the standard is the highest that is technologically achievable, safe, cost-effective, and is not less than the standard from the previous year.
  
  
• Cost-effectiveness would be defined as the value to the United States of the reduced fuel use from the proposed standard being greater than or equal to the cost of such a standard.  Other factors for consideration would be economic and national security, the impact of oil on the economy, the cost of storage, and emissions. 
  
  
• The value to the consumers of a gallon of gasoline saved would be the greater of either the average value of gasoline prices projected by the Energy Information Administration during the period of the standard, or the average value of gasoline prices for the 5-year period immediately preceding the year the standard is established.
  
  
• Would require the Secretary to issue safety standards to increase occupant safety in the event of a crash involving vehicles of differing sizes and weights (under 10,000 lbs).
  
  
• Would allow manufacturers that earn credits to apply those credits either to any of the 3 consecutive model years immediately prior to the year in which they were earned, or to any of the 5 consecutive model years immediately following the year they were earned. 
  
  
• Would provide manufacturers the ability to trade credits.   
  
  
• Would create a labeling program to advertise automobiles that have the best fuel economy and the lowest greenhouse gas emissions.
  
  
• Would require the National Academy of Sciences (NAS) to update its 2002 report to include an assessment of vehicle technologies.  The NAS report would be updated every 5 years until 2025. 
  
  
• Would require the Federal Government to purchase vehicles that are as fuel efficient as practicable. 
  
  
• Would require manufacturers to display alternative fuel information on applicable vehicles.
  
  
• Beginning in December 2009, the Administrator would be required to review fuel economy vehicle labeling processes every 5 years and report to Congress. 
  
  
• Would establish a national tire fuel efficiency consumer information program to educate consumers about the effect of tires on automobile fuel efficiency. 
  
  
• Would establish an advanced battery initiative to support research, development, demonstration, and commercial application of battery technologies. 
  
  
• Would ensure that biodiesel fuels comply with appropriate American Society for Testing and Materials standards.
  
  
• Fines obtained by the Treasury for violations of fuel economy standards would be used evenly for both research and development of fuel saving automotive technologies and agency rulemakings, as well as grants to expand infrastructure necessary to increase the availability of alternative fuels to consumers. 
  
  
• Authorizes to be appropriated to the Secretary $25,000,000 for each of fiscal years 2009 through 2021.
  
  
• Ensures that nothing in this Title would conflict with the Clean Air Act.
  
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